Riordan Manufacturing has taken out an $80,000 short-term bank loan that has a 10% interest...
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Riordan Manufacturing has taken out an $80,000 short-term bank loan that has a 10% interest rate. The loan requires that Riordan maintain a compensating balance of 15% of the amount borrowed. Calculate the effective interest rate on the loan. a. 12.4% b. 11.2% c. 12.8% d. 11.8% e. 10.0%
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